It's looking like a very merry online Christmas

Retail reporter

THE growth in online spending this Christmas is tipped to more than triple as shoppers increasingly turn to websites and smart phone applications to help fill their stockings.

Figures from the business information analysts IBISWorld reveal that overall Christmas spending will rise 3.9 per cent this year, with the average Australian spending $1600 for a total of $28.5 billion.

IBISWorld forecasts online retailing will drive a sales surge of 34.4 per cent, compared with growth just below 10 per cent between December 2010 and 2011.

Across the key online categories, liquor retailing is expected to top the scale and generate 10 per cent growth from 2011, followed by electronics with a jump of 7.7 per cent.

''This year we'll spend almost the same amount online as we will on toys, games and video games - all significant categories in traditional Christmas spending,'' IBISWorld's general manager, Karen Dobie, said.

The rush to buy online has turned into a flood of late as consumers use the strong Australian dollar to buy overseas products at deep discounts to domestic prices.

A report from Google Australia this week showed that 2012 is expected to be Australia's biggest online Christmas so far. Google reported an overall 20 per cent increase in shopping-related searches year on year as Christmas shoppers took to the web to research gift ideas and place orders.

Bricks and mortar retailers have been improving their web offerings to ensure a cut of the money spent over the internet this Christmas finds its way into their tills.

David Jones launched its new online shopping site last week with more than 90,000 product lines available, while its rival department store Myer (40,000 items available online) has also been adding functions and products to its site.

Ms Dobie said clothing and footwear retailers were expected to be ''licking their wounds'' this festive season with growth of just 1.3 per cent on last year.